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Posted: Wed May 07, 2008 11:02 am
by gracey84
I'm currently looking at moving jobs which would mean a payrise putting my salary up £7k from when I first started my IVA. I'm wondering with my salary being more and I'll have more money available to me would I have to pay more, even though the payments i'm making now seem to be very close to what i'd have been paying had I not entered my IVA and had continued paying my previously agreed loan payments. If i'm paying more into the IVA than needed will it end earlier than the 5 year agreement? I have 33 more payments to make, at my current payment rate that will be over £13k. I owed just under £20k when I first started and have paid over £10k so far into my IVA.
Posted: Wed May 07, 2008 11:12 am
by Oliver
If you are earing more and have nothing to offset the additional monies with (i.e increased travel costs etc...) then it is likely that you will have to pay more into your IVA as one of the key principles in an IVA is that you pay your creditors to the best of your ability.
The most you will ever pay into an IVA is the full amount of debt owing, the IP fees and potential statutory interest. If you reach this amount before the end of your IVA term then you will not pay any further monies.
Posted: Wed May 07, 2008 11:15 am
by rayb
Hi,
Obviously with an IVA the idea is to pay back as much as you can afford to your Creditors and if this actually means paying back the full amount in the first place then surely this can only be a good thing for both yourself and your creditors. Your payments will definitely go up unless you can offset them against your I & E
Posted: Wed May 07, 2008 11:15 am
by gracey84
OK, thanks for that! I don't mind paying more if it means I can finish my IVA earlier!
I'm not even half way through but i'm already looking forward to the day when i'm debt free and can start my life again!
Posted: Wed May 07, 2008 12:47 pm
by welshman
i don't think you will pay the IVA off early just because you earn more, you will just end up paying more.I believe the only way to end the IVA early is to offer a full and final offer to pay it off.
Posted: Wed May 07, 2008 1:29 pm
by emma_t
Hi gracey
A others have said you pay back what you can afford and with that kind of rise I would expect your payments to increase.
The maximum you would ever pay back is the origional debt amount + IP fees + statutory interest and if you reached this figure then your iva would conclude early.
Emma x